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2018Activity report
GEOSTOCK 2018 ACTIVITY REPORT P — 03
A word from the CEO
In 2018, the consequences of the Oil & Gas crisis and the remaining high level of uncertainties within our
industry have continued to impact the underground storage market with an overall low level of activity worldwide.
Within this context, the Geostock Group has maintained satisfactory performance with high discrepancies between the different affiliates of the Group.
ˇ Geostock SAS has maintained a good level of activity as well as a satisfactory profitability of 5% thanks to major projects in Middle East, Mexico and Vietnam,
ˇ UGS GmbH, despite strong efforts to maintain its profitability, has been strongly affected by drilling operations that were postponed at year end resulting in significant losses,
ˇ Geostock Sandia LLC has benefited from a recovering and dynamic market in the US to increase its activity, yielding positive results for the first time in several years. In parallel, the company started to restructure its organization,
ˇ Geostock Asia Pte Ltd. consolidated its very good performance thanks to our major projects in the Middle East,
ˇ Geostock de México SA de CV consolidated its very good performance in operating the Shalapa facilities simultaneously with end of project activities. The company reached one year without an accident in a difficult context. The Shalapa project constitutes a showcase for our development in the Americas as well as in all other regions of the world.
With the support of Entrepose Group and TOTAL, Geostock has maintained its efforts to promote and secure major projects.Among them, strong efforts have been made
in Mexico to prepare future developments, similar to the Shalapa project. In South America our goal is to accompany our customers with proximity in order to ensure the success of their projects.In North Africa, mainly Algeria and Morocco, our historical efforts to stay close to our customers and help them develop storage capacity to suit the needs of the local market are promising and will probably lead to new projects in 2019.In the Middle East, given the complex geopolitical situation, new projects are in the horizon, which make this region very promising for the Group.In parallel, Geostock, convinced by the urgent need for Energy Transition, is investing in and maintaining high levels of R&D in Energy Storage (mainly Compressed Air and Hydrogen underground storage) in order to anticipate future needs.Despite the difficult past two years faced by our industry, we can see some emerging signs of recovery in several regions of the world. It is too early to anticipate the impact on our market, but it is encouraging and we are confident that Geostock will be successful in securing major new opportunities while maintaining excellence in our historical contracts and most particularly in Géosel, Géogaz and Géométhane in France.
Therefore, Geostock will continue to closely support its customers and accompany them in developing their projects, while reinforcing our mutual trust.
"The Geostock Group has maintained satisfactory performance"
Our strategy and values
Contents
Be the standard in underground storage, for all techniques and products.
Attain perfection in terms of Hygiene, Safety and the Environment.
Earn the confidence of our shareholders, our customers and our partners.
Be a player in energy transition by offering new possibilities for storing gas and renewable energy.
Participate in the development of our employees, support them in their professional careers and facilitate the transfer of knowledge.
Innovate in order to prepare future storage facilities.
03 A word from the CEO 04 Organization and teams06 Key figures 08 Our commitments16 Our activities 20 Our expertise24 Our innovation program26 Contacts
Pascal BAYLOCQ Managing Director / Geostock Holding SAPresident and CEO / Geostock SAS
Géogaz-Lavéra (France) - Dryers
Cover page: Shalapa storage site (Mexico)
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 05P — 04
GEOSUD 50%
CNPASSURANCES
98%
STORENGY 50%
IFPEN 3%BRGM 1,5%VGS 40%
100% 100% 100% 100% 60% 95,5% 2%100%
GEOSTOCK GEOSTOCKDE MEXICO
GEOSTOCKASIA
GEOSTOCKDO BRASIL
GEOSTOCKNORTH AMERICA
GEOGREEN GEOSUDUGS
STONORGAZ BANYANCAVERNSSTORAGE SERVICES
VTS 45%JCPL 20%
100% 35%
GEOSTOCKSANDIA
GEOSTOCK US FEDERAL SERVICES
100% 100%
GEOMETHANE
GEOSTOCK ANKARABRANCH - TURKEY
100%
GEOSTOCK FUJAIRAHBRANCH - UAE
100%
10%90%
Geostock is a subsidiary of Entrepose Group (Vinci Group) and Total and is established on every
continent through its worldwide subsidiaries, offering proximity services to its clients.
Organization and Teams
Subsidiaries management teams
Pascal BAYLOCQPresident and CEO
Dominique LEBTAHI Vice President Operations & Development
Louis LONDETechnical Director
Thierry VORGERS Legal Director
Vincent LE QUELLEC Vice President Administration & Finance
Isabelle GUETRE Human Resources Director
Executive committee
Management committee
Carlos GOMEZ MONTALVODirector Sales & Marketing
Alain HERFRAYOperation Manager
Lotfi MOUNEDJIDirector Business Development
Gilles MUNIERDirector Projects Division
Flore OSTAPOFFDirector HSE & Permitting Department
Matthias HERTER & Robert SCHELERSenior Managing DirectorsUGS GmbH – Berlin(Germany)
Richard STEWART President and CEOGEOSTOCK SANDIA LLC Houston, Texas (USA)
Jintang YANGeneral ManagerGEOSTOCK ASIA Pte Ltd (Singapore)
Gilles MUNIERCEOGEOGREEN SA Paris (France)
Jonathan ROYER-ADNOT Country ManagerGEOSTOCK DO BRASIL Ltda Rio de Janeiro (Brazil)
Alain HERFRAYUnique DirectorGEOSTOCK DE MEXICO SA de CV (Mexico)
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 07P — 06
Support
Well services
Engineering
Operation
Miscellaneous
Well services
Engineering
Operation
KEY FIGURES 2016
0
20
40
60
80
100
20162015201420132012201120102009
0
20
40
60
80
100
20162015201420132012201120102009
60
80
100
20162015201420132012201120102009
0
10
20
30
40
50
60
20162015201420132012201120102009
81 78.7
83.7
88.7
89.7
97.6
84.1
80.6
7.6
11.4
12.2
13.7
11.9
12.4
8.6
56.5
OPERATION 35%
ENGINEERING 40%
ADMINISTRATION 13%
WELL SERVICES 12%
OPERATION 52%ENGINEERING
33%
WELL SERVICES15%
LIQUEFIED HYDROCARBONS 15%
EFFLUENTS & OTHERS
13%
LIQUID HYDROCARBONS 25%
NATURAL GAS 47%
KEY FIGURES
OPERATION 32%
ENGINEERING 38%
ADMINISTRATION 16%
WELL SERVICES 14%
LIQUEFIED HYDROCARBONS 22%
EFFLUENTS & OTHERS
23%
LIQUID HYDROCARBONS 24%
NATURAL GAS 31%
OPERATION 43%
ENGINEERING 50%
WELL SERVICES7%
0
10
20
30
40
50
60
20182017201620152014201320122011
12.2
11.9
13.7
12.4
8.6
56.5
54.6
56.7
11.4
12.2
13.7
11.9
12.4
8.6
56.5
54.6
0
20
40
60
80
100
20182017201620152014201320122011
83.7
88.7
89.7
97.6
84.1
80.6
83.4
82.0
OPERATION 66%
ENGINEERING 27%
WELL SERVICES7%
WE
Support
Well services
Engineering
Operation
Miscellaneous
Well services
Engineering
Operation
KEY FIGURES 2016
0
20
40
60
80
100
20162015201420132012201120102009
0
20
40
60
80
100
20162015201420132012201120102009
60
80
100
20162015201420132012201120102009
0
10
20
30
40
50
60
20162015201420132012201120102009
81 78.7
83.7
88.7
89.7
97.6
84.1
80.6
7.6
11.4
12.2
13.7
11.9
12.4
8.6
56.5
OPERATION 35%
ENGINEERING 40%
ADMINISTRATION 13%
WELL SERVICES 12%
OPERATION 52%ENGINEERING
33%
WELL SERVICES15%
LIQUEFIED HYDROCARBONS 15%
EFFLUENTS & OTHERS
13%
LIQUID HYDROCARBONS 25%
NATURAL GAS 47%
KEY FIGURES
OPERATION 32%
ENGINEERING 38%
ADMINISTRATION 16%
WELL SERVICES 14%
LIQUEFIED HYDROCARBONS 22%
EFFLUENTS & OTHERS
23%
LIQUID HYDROCARBONS 24%
NATURAL GAS 31%
OPERATION 43%
ENGINEERING 50%
WELL SERVICES7%
0
10
20
30
40
50
60
20182017201620152014201320122011
12.2
11.9
13.7
12.4
8.6
56.5
54.6
56.7
11.4
12.2
13.7
11.9
12.4
8.6
56.5
54.6
0
20
40
60
80
100
20182017201620152014201320122011
83.7
88.7
89.7
97.6
84.1
80.6
83.4
82.0
OPERATION 66%
ENGINEERING 27%
WELL SERVICES7%
WE
Support
Well services
Engineering
Operation
Miscellaneous
Well services
Engineering
Operation
KEY FIGURES 2016
0
20
40
60
80
100
20162015201420132012201120102009
0
20
40
60
80
100
20162015201420132012201120102009
60
80
100
20162015201420132012201120102009
0
10
20
30
40
50
60
20162015201420132012201120102009
81 78.7
83.7
88.7
89.7
97.6
84.1
80.6
7.6
11.4
12.2
13.7
11.9
12.4
8.6
56.5
OPERATION 35%
ENGINEERING 40%
ADMINISTRATION 13%
WELL SERVICES 12%
OPERATION 52%ENGINEERING
33%
WELL SERVICES15%
LIQUEFIED HYDROCARBONS 15%
EFFLUENTS & OTHERS
13%
LIQUID HYDROCARBONS 25%
NATURAL GAS 47%
KEY FIGURES
OPERATION 32%
ENGINEERING 38%
ADMINISTRATION 16%
WELL SERVICES 14%
LIQUEFIED HYDROCARBONS 22%
EFFLUENTS & OTHERS
23%
LIQUID HYDROCARBONS 24%
NATURAL GAS 31%
OPERATION 43%
ENGINEERING 50%
WELL SERVICES7%
0
10
20
30
40
50
60
20182017201620152014201320122011
12.2
11.9
13.7
12.4
8.6
56.5
54.6
56.7
11.4
12.2
13.7
11.9
12.4
8.6
56.5
54.6
0
20
40
60
80
100
20182017201620152014201320122011
83.7
88.7
89.7
97.6
84.1
80.6
83.4
82.0
OPERATION 66%
ENGINEERING 27%
WELL SERVICES7%
WE
Support
Well services
Engineering
Operation
Miscellaneous
Well services
Engineering
Operation
KEY FIGURES 2016
0
20
40
60
80
100
20162015201420132012201120102009
0
20
40
60
80
100
20162015201420132012201120102009
60
80
100
20162015201420132012201120102009
0
10
20
30
40
50
60
20162015201420132012201120102009
81 78.7
83.7
88.7
89.7
97.6
84.1
80.6
7.6
11.4
12.2
13.7
11.9
12.4
8.6
56.5
OPERATION 35%
ENGINEERING 40%
ADMINISTRATION 13%
WELL SERVICES 12%
OPERATION 52%ENGINEERING
33%
WELL SERVICES15%
LIQUEFIED HYDROCARBONS 15%
EFFLUENTS & OTHERS
13%
LIQUID HYDROCARBONS 25%
NATURAL GAS 47%
KEY FIGURES
OPERATION 32%
ENGINEERING 38%
ADMINISTRATION 16%
WELL SERVICES 14%
LIQUEFIED HYDROCARBONS 22%
EFFLUENTS & OTHERS
23%
LIQUID HYDROCARBONS 24%
NATURAL GAS 31%
OPERATION 43%
ENGINEERING 50%
WELL SERVICES7%
0
10
20
30
40
50
60
20182017201620152014201320122011
12.2
11.9
13.7
12.4
8.6
56.5
54.6
56.7
11.4
12.2
13.7
11.9
12.4
8.6
56.5
54.6
0
20
40
60
80
100
20182017201620152014201320122011
83.7
88.7
89.7
97.6
84.1
80.6
83.4
82.0
OPERATION 66%
ENGINEERING 27%
WELL SERVICES7%
WE
Support
Well services
Engineering
Operation
Miscellaneous
Well services
Engineering
Operation
KEY FIGURES 2016
0
20
40
60
80
100
20162015201420132012201120102009
0
20
40
60
80
100
20162015201420132012201120102009
60
80
100
20162015201420132012201120102009
0
10
20
30
40
50
60
20162015201420132012201120102009
81 78.7
83.7
88.7
89.7
97.6
84.1
80.6
7.6
11.4
12.2
13.7
11.9
12.4
8.6
56.5
OPERATION 35%
ENGINEERING 40%
ADMINISTRATION 13%
WELL SERVICES 12%
OPERATION 52%ENGINEERING
33%
WELL SERVICES15%
LIQUEFIED HYDROCARBONS 15%
EFFLUENTS & OTHERS
13%
LIQUID HYDROCARBONS 25%
NATURAL GAS 47%
KEY FIGURES
OPERATION 32%
ENGINEERING 38%
ADMINISTRATION 16%
WELL SERVICES 14%
LIQUEFIED HYDROCARBONS 22%
EFFLUENTS & OTHERS
23%
LIQUID HYDROCARBONS 24%
NATURAL GAS 31%
OPERATION 43%
ENGINEERING 50%
WELL SERVICES7%
0
10
20
30
40
50
60
20182017201620152014201320122011
12.2
11.9
13.7
12.4
8.6
56.5
54.6
56.7
11.4
12.2
13.7
11.9
12.4
8.6
56.5
54.6
0
20
40
60
80
100
20182017201620152014201320122011
83.7
88.7
89.7
97.6
84.1
80.6
83.4
82.0
OPERATION 66%
ENGINEERING 27%
WELL SERVICES7%
WE
Key figures
Workforce
510 people
Operating Income
2.04 M€
Backlog
110 M€ end 2018
Group consolidated turnover (M€)
Cash after long term debts (M€)
Group sales per activity(% of gross income)
Group sales per product line(% of gross income)
Headcount per activity
GEOSTOCK 2018 ACTIVITY REPORT P — 09
Our Commitments
Geostock is committed to implementing and promoting daily actions for Health, Safety,
Social Care and Environmental Awareness.
Our HSE policy: Zero accidents
Zero Lost Time AccidentsZero Major Accidents
Zero Environmental Damage
Continued deployment of our "10 Fundamental HSE Rules" with a focus on environmental and road-risk issues through staff training and awareness.
Continued deployment of our "HSE Visits" tool, to involve all staff, including administrative, in the HSE process and to widely promote our HSE policy on our storage sites and work sites.
Continued promotion of our "AIMS" tool, to guarantee for our clients integrity management, security and optimization of the performance of storage facilities and control of their aging.
Proactivity in HSE actions
SAFETY RECORD OF FRENCH STORAGE FACILITIESIn France, the Géogaz-Lavéra underground storage facility, operated by Geostock, completed on January 11, 2018, its tenth year without a Lost Time Accident.
These ten years represent a traffic volume of: More than 700.000 man hours worked. Over 150.000 loaded trucks and 50,000
loaded tank wagons.
Géogaz storage site (France) - Lifting the new dryer.
Géogaz (France) Truck loading operation
Work permit checking
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 11P — 10
Our Mexican subsidiary Geostock de México has set up a program called “The Big Loser” in collaboration with the IMSS (Mexican Social Security) to fight against overweight and obesity among employees and improve their health. Organized as a competition, this program aims to raise participants’ awareness of their overweight and health risks and help them
to reduce their BMI (Body Mass Index) to limit the risks associated with being overweight and obese. This program was also launched during the Entrepose Group’s 2018 Health & Safety challenge and has been chosen for its originality.
"THE BIG LOSER" HEALTH PROGRAM
To reduce impacts and contribute to better social behavior. World Environment Day action
To celebrate 2018 World Environment Day, the Geostock teams in Mexico City held a special day on May 26th. They invited their families and especially their children to raise awareness about protecting the planet by organizing a tree-planting operation on the site, one per child.
With a Human Resources policy offering long-term prospects and respect for diversity and equal opportunities through:
Gender diversity: by maintaining the percentage of women in the group, which currently accounts for 30.5% of staff in France and 25.4% overall across the Group,.
Skill transmission: by pursuing our plans to transfer knowledge from employees in engineering and operational activities who are entering retirement.
Sustainable development Taking actions to help the disabled
and for healthcare,
Raising staff awareness with three training actions on selected topics related to disabilities,
Participating in the local inter-company solidarity race organized by Special Olympics France for the profit of the mentally disabled public,
Fighting against cancer by participating in the Odyssea charity race for the Gustave Roussy research fund with our main shareholder, Entrepose Group,
Implementing an obesity-control program in our Mexico subsidiary (see box).
Social commitments
Special Olympics France race Geostock teamTree-planting operation (Shalapa/Mexico)
Employee development
Geogaz storage site - Decenial inspection
FRANCEMANOSQUEClient: Géosel Full operation site management.
MEXICOSHALAPA (VERACRUZ)Client: ASSEOwner’s engineer for Commissioning and Start-up. Operator of the site.
USANOTCHCLIFF (MARYLAND)Client: Baltimore Gas & Electric Inspection of rock cavern casings.
JAPAN KURASHIKI & NAMIKATAClient: JOGMECTechnical assistance to storage operation.
SOUTH KOREA ULSANClient: SK GASTechnical assistance to storage operation.
VIETNAM CAI MEPClient: Hyosung Vietnam Co., LtdExploration, Basic Design.
SOUTH KOREA INCHON & YEOSUClient: E1Technical assistance to storage operation.
CHINA NINGBO (ZHEJIANG)Client: Oriental EnergyBasic Design.
CHINA YANTAI (SHANDONG)Client: Wanhua Chemical GroupExploration studies and Basic Design reviews.
FRANCE PETIT-COURONNEClient: Shell FranceStorage decommissioning.
See box
FRANCE LAVÉRAClient: GéogazOperator of the storage.
BELGIUM LOENHOUTClient: FluxysTechnical assistance to storage operation.
ARGENTINACUPENClient: TecpetrolDepleted field conversion assessment .
See box
ARGENTINAADISClient: TecpetrolDepleted field conversion.
CANADATORONTOClient: Hydrostor CAES Underground Storage
See box
GEORGIA SAMGORI SOUTH DOMEClient: GOGCEngineering and supervision of exploration works.
TURKEY TUZ GÖLUClient: TCCAssistance to leaching (Phase I).
GERMANY EPE-GRONAUClient: EPGCompletion of two caverns and execution of gas-first-fill operation.
GERMANY JEMGUMClient: ASTORAO&M services.
GERMANY EPE-GRONAUClient: Air LiquideOperation of the storage.
GERMANY BERLINClient: BESGas storage underground part decommissioning.
SINGAPOREJURONG Client: JTCFull operation site management through BCSS Joint Venture.
UAE ABU DHABI
Our activities
b Algeriab Argentinab Australiab Bahraïnb Belgiumb Brazilb Canadab Chinab Congob Franceb Georgiab Indiab Italyb Japan
b Mexicob Moroccob Netherlandsb Portugalb Singaporeb South Koreab Turkeyb United Arab Emiratesb United Kingdomb United Statesb Vietnam
A presence in 25 countries in 2018
b Liquid Hydrocarbonsb Liquefied Hydrocarbonsb Natural Gasb Others
Our references
In the context of closing two propane and butane mined caverns located in Petit-Couronne (near Rouen, France) for Shell France, Geostock carries out the tasks of inundating the caverns, halting hydrodynamic containment, dismantling surface facilities, and filling in wells and structures for piezometric monitoring and the seismic network. The works, entrusted to a short-term joint venture led by Solétanche is a good example of synergy among the subsidiaries of Vinci Construction. For this work site, Geostock applies the HSE standards of Shell, considered as a pilot site for their "Visual Safety Leadership" program.The work, which began in 2017, will continue through 2019.
Storage site facility decommissioning
Petit-Couronne (France) – Client: Shell France
On behalf of Hydrostor, based in Toronto, Canada, a leader in Advanced Compressed Air Energy Storage (A-CAES), a carbon-free energy storage technology, Geostock provided in 2018 an initial cost evaluation study for civil works and a schedule for the underground part of an A-CAES installation in mined cavern. As part of this project, Geostock also calculated the critical atmospheric pressure in the cavern, with or without a "water curtain", for various geological conditions.
CAES Underground storage
Canado (Toronto) – Client: Hydrostor
Preliminary study and modelisation for depleted field conversion assessment.
Realization of a preliminary study for the conversion of the depleted Cupen field - located in the Neuquén basin (West Argentina) - in underground gas storage. The review of the static and dynamic modeling of the reservoir, started mid-2018 should continue until early 2019. The development of the site is linked to the development of shale gas from the giant formation of "Vaca Muerta", which constitutes one of the world’s greatest discoveries of unconventional resources.
Preliminary study and modelisation
Argentine (Cupen) – Client: YPF
Our Expertise
Geostock proposes a comprehensive offer throughout the full life cycle of
an underground storage project, as well as tailored solutions for the client’s needs
through the expertise of its teams.
The engineering and operational synergy within Geostock
means that our services are constantly being improved.
Engineering meeting
Petit-Couronne (France) - Decommissioning of the vent "Véronique"
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 21P — 20
From specific services to full operation management
Operation services
Geostock offers three different operating service models that enhance storage performance while ensuring the integrity of installations. Adapted to each customer’s needs, they are the result of over 50 years of experience in the operation and maintenance of underground storage facilities.
Geostock provides O&M services in more than 20 storage sites around the world, in mined or salt caverns as well as in depleted or aquifer storages, for LPG, oil products or natural gas.
The company has operated the Géosel and Géogaz storage facilities in France for nearly 50 years and has been operating an LPG storage facility in Shalapa, Mexico for the past two years.
The company is also involved in the operation of the Jurong Rock Caverns storage site in Singapore through its 35% shareholding in Banyan Caverns Storage Services, operator of the storage site.
Technical support services
Participation in storage operation
Full storage operation management
EXAMPLES OF SERVICES Storage operations management, Storage facility monitoring, Asset technical and integrity management, Corrosion studies, Technical studies on equipment and facility, Well design and operations, Storage audits, Health, safety and environment, Site decommissioning and closure.
Shalapa (Mexico) - Salt cavern wellhead
Ranging from consulting engineering and design studies to construction supervision.
ECONOMIC STUDIES Market survey and evaluation, Planning studies, Economic feasibility assessment, Due diligence, Business model evaluation.
DESIGN Orientation and prefeasibility studies, Site selection, Exploration, Feasibility studies, Project planning, Reservoir and cavern engineering, Permits, Conceptual & Basic design, Modelling.
CONSTRUCTION Engineering, Detailed design, Tendering, Procurement, Construction management, Commissioning and start-up.
DRILLING, WORK OVER, SOLUTION MINING Drilling, Well logging, Well completion, Workovers, Solution mining, Brine, CO2 and effluent disposal
in deep aquifers, Operation of leaching plants
Engineering services
Géosel-Manosque (France) - Surface facilities
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 23P — 22
Salt cavern storage requires the presence of a significant salt deposit. The cavern is created by dissolving the salt in fresh water (leaching). Its shape and volume are established by sonar readings. The caverns are elongated in shape, several hundred meters high and several tens of meters in diameter. They are usually located at depths of between 200 and 2000 meters
and can have a volume of several hundred thousand cubic meters.
The stability of the cavern is guaranteed by the right choice of geometry and continuous monitoring of the pressure, temperature and flow during operation. Its tightness results from the intrinsic properties of salt.
PRODUCTS STORED
b Liquid hydrocarbons b Liquefied hydrocarbons b Natural gas b Compressed air b Hydrogen b Effluents
Leached-salt caverns
A field of this type is a porous, permeable geological formation (the reservoir) — a depleted field or an aquifer — overlain with an impermeable stratum and structured so as to ensure lateral containment.It is usually located at a depth of between 500 and 2000 meters. During the storage phase, the gas is compressed and injected into the reservoir in gaseous state through a series of
production wells. During recovery, the gas is withdrawn under the effect of its own pressure.Equipment on the surface includes specifically compression, processing and metering facilities. Monitoring wells are used to check the position of the gas and the tightness of the reservoir.
PRODUCTS STORED
b Natural gas b Compressed air b Hydrogen b CO2 b Effluents
Aquifers and depleted fields
A mined cavern consists of one or more tunnels carved out of rock (limestone, chalk, granite, etc.). The tunnels are usually located at a depth of 50 to 200 meters. Generally unlined, their tightness is based on the principle of hydraulic containment, which defines the depth at which the cavern needs to be located to allow for the water naturally contained in the surrounding
rocks to flow constantly towards the cavern at all points, thus containing the product inside the storage cavern.The mined-cavern technique — both with and without a lining, as applicable — may also be used for the cryogenic storage of gases having a liquefaction point below -10°C.
PRODUCTS STORED
b Liquid hydrocarbons b Liquefied hydrocarbons b Natural gas (compressed or liquefied)
Mined-rock caverns
Geostock benefits from a full range of skills, with over fifty years of know-how and
expertise in underground storage technologies, for all techniques and all products.
Technical know-how
GEOSTOCK’S EXPERTISE IN UNDERGROUND STORAGE COVERS:
Subsurface technologies (geology, geophysics, geomechanics, hydrogeology, reservoir engineering, civil engineering, mining and solution mining),
Surface technologies (piping, pumps, pressure vessels, processes, electricity/instrumentation, control systems, corrosion),
Drilling and well services, Construction management,
operation and maintenance, integrity management,
Closure and abandonment of underground gas storage facilities.
Geostock is an active member of several worldwide scientific and technical societies in its field, such as SMRI (Solution Mining Research Institute), ISRM (International Society for Rock Mechanics), or SPE (Society of Petroleum Engineers).
AQUIFERS AND DEPLETED FIELDS
MINED-ROCK CAVERNS
LEACHED-SALT CAVERNS
Multidisciplinary expertise
Shalapa (Mexico) - General view of brine ponds
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 25P — 24
Our innovation program
DEVELOPING NEW TOOLS AND NEW METHODOLOGIES AND ACQUIRING NEW KNOWLEDGE:
The GUSTS-V2 tool for simulation of thermodynamics in salt caverns was enriched with new functions such as the improvement of the consideration of the shape of the cavern and the simulation of a double well at the head of the cavern.
The biocide research program, which aims at allowing us to control surfate-reducing and thiosulfate-reducing bacteria responsible for the production of H2S and for metal corrosion has been continued in 2018.
The method for calculating the mass balance of the proof tests (Mechanical Integrity Tests) of salt caverns was modified to refine the vertical discretization at the roof of the cavern. The accuracy of the interpretations was thus improved.
OPERATOR TRAINING:
Setting up a simulator of underground storage operations in mined caverns, which reproduces manual operational conditions as well as accident scenarios.
AIMS OFFER:
Extension of the offer of Asset Integrity Management System (AIMS) services, in particular for the Well Integrity Management System (WIMS).
Improvement of our services in core business areas
Development of carbon-free underground energy storage solutions
A CONTINUATION OF THE EFFORTS MADE IN THIS REGARD DURING RECENT YEARS, IN THE CONTEXT OF THE ENERGY TRANSITION:
Continuation of our contribution to collaborative programs on hydrogen storage (ROSTOCK-H / Géodénergies) and "power-to-power" (FLUIDSTORY / ANR: study of the Electrolysis-Methanation-Oxycombustion chain). Geostock also participated in setting up the STOPIL-H2 / Géodénergies collaborative program, which aims to study a hydrogen salt cavern storage; and in setting up the BLOCKFALL / Géodénergies collaborative program, dedicated to detecting block falls in salt caverns by recording wellhead pressure variations. These two programs are scheduled for 2019 and 2020.
Geostock and Geogreen are also active partners of Géodénergies as members of the COST (Strategic and Technological Orientation Committee), and Geostock also leads the Management Committee.
Participation, alongside our shareholder Entrepose, in the economic assessment of various "power-to-power" options.
IN ADDITION TO THESE R&D STUDIES, PROVIDING VARIOUS SERVICES FOR:
The HYGREEN project (green hydrogen storage in salt caverns, in the South of France),
Underground heat storage,
And compressed air energy storage (CAES) in mined caverns.
Development of new services in our core business areas
Development in three major areasto ensure better performance in our historical
markets and to conquer new ones.
Hydrogen Underground Storage
Operator training simulator
GEOSTOCKGEOSTOCK 2018 ACTIVITY REPORT2018 ACTIVITY REPORT P — 27P — 26
FRANCEGEOSTOCK SAS2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geostockgroup.com---Pascal BAYLOCQPresident and CEO
GEOGREEN SA2, rue des MartinetsCS 7003092569 RUEIL-MALMAISON CedexTel.: +33 1 47 08 73 00Fax: +33 1 47 08 73 73 www.geogreen.eu---Gilles MUNIER CEO
BRAZILGEOSTOCK DO BRASIL Ltda.Avenida Rio Branco, n°20, 3° andar, centro, Cidade do RIO DE JANEIRORJ, CEP: 20090-000Tel.: +55 21 9 8039 9090---Jonathan ROYER-ADNOTCountry Manager
GERMANYUGS GmbHBerliner Chaussee 215749 MITTENWALDE Tel.: +49 337 64820Fax: +49 337 648280www.ugsnet.de ---Matthias HERTERRobert SCHELERSenior Managing Directors
MEXICO GEOSTOCK DE MÉXICO SA de CVAv. Paseo de la Reforma 300, piso 3Col. Juárez, Del. Cuauhtémoc06600 CIUDAD DE MÉXICO---Alain HERFRAYUnique Director
SINGAPORE GEOSTOCK ASIA Pte Ltd.3 International Business Park#03-27 Nordic European CentreSINGAPORE 609927Tel.: +65 6896 0659Fax: +65 6563 6839---Jintang YANGeneral Manager
TURKEYGEOSTOCK ANKARA BRANCHc/o OPALIT Tic. ve San. LtdŞti. Kırçiçeği S. 134 G.O.P ANKARATel.: +90.312. 446 12 77 (3 Hat) Fax: +90.312. 436 73 56---Haluk AYDEMIRBranch Manager
ContactsUNITED ARAB EMIRATESGEOSTOCK SAS FUJAIRAH BRANCHPO Box 1844FujairahUnited Arab Emirates---Lotfi MOUNEDJIGeneral Manager
USAGEOSTOCK SANDIA, LLC8860 Fallbrook DriveHOUSTON, Texas 77064Tel.: +1 (346)314-4347Fax: +1 (832) 286-0477www.geostocksandia.com---Richard STEWARTPresident and CEO
PHOTOS CREDITSGeostock and Entrepose photo libraries - Franck Beloncle - Adrien Vaucher - Géogaz Lavéra - Géosel Manosque - Antonin Rousseau
2, rue des Martinets - CS 7003092569 Rueil-Malmaison Cedex • FranceTel.: +33 1 47 08 73 00 • Fax: +33 1 47 08 73 73www.geostockgroup.com
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